Fiduciary Liability Insurance was developed to protect those individuals who administer employee benefits plans that are subject to ERISA, the federal law which governs those plans.  An individual who is deemed to be a Fiduciary is subject to Personal Liability (meaning their personal assets) in the performance of their duties. 

 

Types of Employee Benefit Plans subject to ERISA:

 

        Defined Benefit/Contribution Plans

        ESOP's

        401K Plans

        Health/Medical Plans

        Dental Plans

 

Who can Sue for Breach of Duty?

 

   Participants (Employees) or Beneficiaries

   US Department of Labor

 

Types Of Actions that Lead to Claims:

 

   False of Misleading Statements

   Imprudent Investments

   Diversification or Failure to

   Non-Compliance with Plan Documents

   Errors in the Administration of Plans

   Selection of or Failure to Monitor Outside Investment Manager